PENSION BENEFITS REPORT
Death and retirement benefits
Unfortunately, I have been receiving questions
recently about the death benefits that our mem-
bers’ beneficiaries are entitled to. If one of our
members was to pass away due to a death that
was not in the line of duty, that is considered to
be an untimely active member death. What that
means is the member died from something not
related to the performance of their job.
Say one of our members was at the local town
PETER
ANDREYEV gym working out, off the clock, and experienced
a massive heart attack while on the elliptical. In
this type of circumstance, the member’s spouse
would be eligible for a survivor’s pension: 50 percent of the sala-
ry the member was receiving at the time of death. So if your sal-
ary is $100,000 with your longevity, your spouse would receive
half of that salary — $50,000. The $50,000 would be dispersed in
monthly payments for the rest of your spouse’s life or until he or
she remarries.
In addition to that survivor’s pension, the spouse (if listed as
the primary beneficiary) would receive 3.5 times the $100,000
as payment for life insurance. The $350,000 would be paid in
one lump sum to the primary beneficiary and any other ben-
eficiary listed to receive the life insurance. This benefit is also
available to those members who have a civil union partner or a
domestic partner.
14
NEW JERSEY COPS
■ AUGUST 2018
Everyone reading this should take the few minutes to update
your beneficiary for your pension in order to have the loved
ones in your life taken care of with your benefits.
Retired members’ spouses are also eligible for pension ben-
efits. Even though some of our members have been retired for
quite some time, their spouses will receive 50 percent of the fi-
nal salary that was used to calculate their pension. If a member
retired after 25 years of service and during the final 12 months
earned $100,000, then that member would receive 65 percent of
that $100,000 (or $65,000) as a retirement pension.
In the event the retired member dies, the retired member’s
spouse will receive 50 percent of the $100,000, not 50 percent
of the current pension of $65,000. The retired spouse would re-
ceive $50,000 for the rest of his or her life or until remarrying,
and the survivor’s pension would be dispersed monthly.
In addition to the survivor’s pension, the retired member’s
spouse will receive half of the salary as a life insurance payment.
For the retired member who in the final 12 months had a sala-
ry of $100,000, the spouse would receive half of the final salary
($50,000), paid out in one lump sum as the portion of the life
insurance.
I hope this clears up any confusion and, as always, please call
or email me if you have any questions regarding this topic. d